Virgin Galactic says it has been given the green light to blast off by the US Federal Aviation Administration.
Virgin said it has been granted a license to fly tourists on future space flights, putting it in front of rivals in the commercial space race.
"The commercial license that we have had in place since 2016 remains in place, but is now cleared to allow us to carry commercial passengers when we’re ready to do so," said Virgin Galactic CEO Michael Colglazier.
Virgin Galactic’s stock soared by more than a third, Its largest single day rise.
It has completed three tests spaceflight and plans to hold three more tests before it plans commercial service.
The second of these would include founder Sir Richard Branson as a passenger.
Fellow billionaires Jeff Bezos and Elon Musk are vying to get their space tourism projects off the ground.
Colglazier said there is no confirmed date yet when Virgin Galactic will start commercial service.
The company says it has about 600 advance reservations for spaceflights with trips costing up to $250,000 per passenger.
